AMP Financial Services has reported a 4% rise in annual life insurance premiums for the quarter ending September 30.

Premiums in the quarter were $1.88 billion due to higher sales and rate increases.

Individual life insurance annual premium income in the third quarter was $913 million, while income protection policies generated $369 million. Group life insurance annual premiums for the third quarter were $343 million.

But the good premium income did not stop a $12 million loss in AMP’s Contemporary Wealth Protection business due to higher income protection claims and growing lapse rates.

Net cashflow for the business in the third quarter was $240 million, compared to $183 million in the corresponding period last year.

The strongest growth, based on a year-to-year comparison, was for group life insurance. Last year AMP recorded net cashflows of $41 million, while in the third quarter of this year it achieved $67 million.

Individual life insurance net cashflows were $173 million for the quarter compared to $142 million in the corresponding period last year.